[Federal Register Volume 83, Number 119 (Wednesday, June 20, 2018)]
[Notices]
[Pages 28709-28710]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-13156]


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SURFACE TRANSPORTATION BOARD

[Docket No. FD 36198 (Sub-No. 1)]


New Orleans Public Belt Railroad Corporation--Trackage Rights 
Exemption--Illinois Central Railroad Company

    On May 21, 2018, New Orleans Public Belt Railroad Corporation (NOPB 
Corp.) filed a verified notice of exemption in Docket No. FD 36198 for 
trackage rights under the class exemption at 49 CFR 1180.2(d)(7) \1\ 
and simultaneously filed a petition in this sub-docket to partially 
revoke the exemption to allow the trackage rights to expire on January 
31, 2020. Notice of the exemption in Docket No. FD 36198 was served and 
published in the Federal Register on June 6, 2018 (83 FR 26,337), and 
became effective on June 20, 2018. This decision addresses NOPB Corp.'s 
petition to partially revoke the exemption.
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    \1\ On June 1, 2018, NOPB Corp. supplemented its verified notice 
of exemption to certify that the traffic subject to the trackage 
rights does not involve an interchange commitment that limits 
interchange with a third-party connecting carrier. See NOPB Corp. 
Letter 1, New Orleans Pub. Belt R.R.--Trackage Rights Exemption--
Ill. Cent. R.R., FD 36198.
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    As explained by NOPB Corp. in its verified notice of exemption in 
Docket No. FD 36198, pursuant to a September 16, 2016 temporary 
trackage rights agreement and subsequent amendment, dated December 28, 
2016, NOPB Corp.'s predecessor obtained temporary overhead trackage 
rights on approximately 6.3 miles of Illinois Central Railroad Company 
(IC) rail line in New Orleans, La., for the purpose of interchanging 
traffic with Kansas City Southern Railway Company (KCS) on KCS trackage 
in New Orleans on a trial basis. See New Orleans Pub. Belt R.R.--Temp. 
Trackage Rights Exemption--Ill. Cent. R.R., FD 36067 (STB served Jan. 
30, 2017); New Orleans Pub. Belt R.R.--Temp. Trackage Rights 
Exemption--Ill. Cent. R.R., FD 36067 (STB served Oct. 14, 2016). NOPB 
Corp. states that it acquired its predecessor's interest in the 
temporary trackage rights arrangement as part of the transaction 
authorized in New Orleans Public Belt Railroad--Acquisition & Operation 
Exemption--Public Belt Railroad Commission of New Orleans, FD 36149 
(STB served Dec. 27, 2017).
    NOPB Corp. states in its petition in this sub-docket that the 
temporary trackage rights were scheduled to expire on January 31, 2018, 
but NOPB Corp. and IC entered into a second amendment to the temporary 
trackage rights agreement, dated January 31, 2018, which further 
extended the

[[Page 28710]]

trackage rights until January 31, 2020. NOPB Corp. filed the petition 
to partially revoke the exemption to allow the trackage rights to 
expire on that date.\2\ NOPB Corp. argues that granting its petition 
will promote the rail transportation policy, will be consistent with 
the limited scope of the transaction, and will not adversely affect the 
current competitive situation of any shipper.
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    \2\ NOPB explains in its notice of exemption that because the 
extended trackage rights were to be more than a year in duration, 
the class exemption for temporary trackage rights under 49 CFR 
1180.2(d)(8) was not available.
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Discussion and Conclusions

    Although NOPB Corp. and IC have expressly agreed on the duration of 
the proposed trackage rights agreement, trackage rights approved under 
the class exemption at 49 CFR 1180.2(d)(7) typically remain effective 
indefinitely, regardless of any contract provisions. Occasionally, 
however, the Board has partially revoked a trackage rights exemption to 
allow those rights to expire after a limited time period rather than 
lasting in perpetuity. See, e.g., Ind. R.R.--Trackage Rights 
Exemption--CSX Transp., Inc., FD 36068 (Sub-No. 1) (STB served Feb. 9, 
2017); Ind. S. R.R.--Temporary Trackage Rights Exemption--Norfolk S. 
Ry., FD 35965 (Sub-No. 1) (STB served Nov. 25, 2015).
    Under 49 U.S.C. 10502, the Board may exempt a person, class of 
persons, or a transaction or service, in whole or in part, when it 
finds that: (1) Continued regulation is not necessary to carry out the 
rail transportation policy of 49 U.S.C. 10101; and (2) either the 
transaction or service is of limited scope, or regulation is not 
necessary to protect shippers from the abuse of market power.
    NOPB Corp.'s trackage rights were already authorized under the 
class exemption at 49 CFR 1180.2(d)(7) in Docket No. FD 36198. Granting 
partial revocation in these circumstances would promote the rail 
transportation policy by eliminating the need to file a second pleading 
seeking discontinuance when the agreement expires, thereby promoting 
rail transportation policy goals at 49 U.S.C. 10101(2), (7), and (15). 
Moreover, limiting the term of the trackage rights is consistent with 
the limited scope of the transaction previously exempted.\3\ Therefore, 
the Board will grant the petition and permit the trackage rights 
exempted in Docket No. FD 36198 to expire on January 31, 2020.
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    \3\ Because the proposed transaction is of limited scope, the 
Board need not make a market power finding.
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    To provide the statutorily mandated protection to any employee 
adversely affected by the discontinuance of trackage rights, the Board 
will impose the employee protective conditions set forth in Oregon 
Short Line Railroad--Abandonment Portion Goshen Branch Between Firth & 
Ammon, in Bingham & Bonneville Counties, Idaho, 360 I.C.C. 91 (1979).
    This action is categorically excluded from environmental review 
under 49 CFR 1105.6(c).
    It is ordered:
    1. The petition for partial revocation is granted.
    2. Under 49 U.S.C. 10502, the trackage rights described in Docket 
No. FD 36198 are exempted, as discussed above, to permit the trackage 
rights to expire on January 31, 2020, subject to the employee 
protective conditions set forth in Oregon Short Line.
    3. Notice will be published in the Federal Register on June 20, 
2018.
    4. This decision is effective on July 20, 2018. Petitions to stay 
must be filed by July 2, 2018. Petitions for reconsideration must be 
filed by July 10, 2018.

    Decided: June 13, 2018.

    By the Board, Board Members Begeman and Miller.
Kenyatta Clay,
Clearance Clerk.
[FR Doc. 2018-13156 Filed 6-19-18; 8:45 am]
 BILLING CODE 4915-01-P